IT company unveils ‘cost-cutting’ communication solution for SMEs

Sun.Star Cebu <> Monday, May 4, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

IN its bid to reach out to the small and medium business (SMB) market in the country, a global provider of business communications applications, systems and services offered a new technology solution that is “tailored” for the SMBs.

Avaya created a converged communications solution called Avaya IP Office that is directed to help SMBs cut costs, enhance customer service and increase productivity, especially amid the global financial crisis.

The Avaya IP Office makes use of voice and Internet protocol (IP) technology that simplifies access to information, allowing the user to save money through conferencing, networking, call management and Voice over IP.

Following its launch in Manila two weeks ago, the product was introduced in Cebu last Thursday to 100 SMBs that are involved in manufacturing, financial services, business process outsourcing and retail, among others.

Productivity

“We now have a true SMB product to address important SMB business imperatives that include productivity, cost reduction and customer service efficiency,” said Edgar Doctolero, country director of Avaya Philippines.

Last year, the company launched the Avaya Small and Medium Business Solutions (SMBS). Although it was “force-fit” for SMBs, Doctolero said the acceptance by companies of the product gave Avaya the idea to integrate customer needs into the IP Office.

IP Office, considered a “wise long-term investment,” enables a user to streamline communication between its staff, partners and customers. It also allows employees to work remotely and seamlessly to any external party.

The “affordable” hybrid solution also has call reporting features that allow SMBs to store, collate and analyze customer data on their computer network, enabling them to understand customer needs and to quickly react to them.

Doctolero said the launch of the Avaya IP Office points to a growing trend on the use of IP technology in the Philippines and in other Southeast Asian countries as solutions become more accessible to smaller businesses.

“While bigger companies have long jumped on the IP telephony bandwagon due to the multiple benefits they can reap from it, (SMBs) are still lagging behind. With IP Office, we are changing all this to enable them to become much more competitive and ultimately pass on the benefits to their customers,” he said.

Avaya plans to launch the same product in Davao to expand its customer and reseller base in Mindanao.

Avaya has over 100 years of experience in the telecommunication solutions industry, including the period it merged with Lucent Technologies Inc.

Filed under: Business, IT/Computers/Software Development

German business group eyes Cebu-based firms as members

Sun.Star Cebu <> Saturday, May 2, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

A YEAR after it was formally incorporated, the German-Philippine Chamber of Commerce and Industry (GPCCI) is planning to increase its membership base with companies operating in Cebu.

At present, the business association has more than 80 member-companies, all located in Metro Manila.

Without giving figures, GPCCI president Klaus Schroeder said there are many German companies in Cebu, as well as Filipino-owned businesses that are doing transactions with Germany. He considered them potential members for the chamber.

He noted that Cebu’s growing tourism industry attracts many foreign investors, including Germans.

“Our thrust now is to cater to small and medium enterprises. If we can get at least 10 businesses from Cebu to join us, that would be a good (start) for us to get more members from here,” said Schroeder, also president and chief executive officer of international transportation company Hapag-Lloyd Philippines Inc.

GPCCI is a non-stock, non-profit organization registered under the Philippine Securities and Exchange Commission.

Founded by 27 member-companies, it was officially incorporated in March last year.

The business group is involved in bilateral trade development through local government cooperation, affiliation with other local chambers, and mediation between Germany and the Philippines.

Schroeder said the organization provide member-companies opportunities to establish business linkages and networks with possible clients.

GPCCI facilitates contacts and offer consul-tancy, industry data and market intelligence, and visa support. It also organizes events and provide advertising opportunities to its members.

One of the chamber’s biggest events, said Schroeder, is Mabuhay Germany exhibition that is being positioned as a venue to increase sales and promotional opportunities of German companies in the country.

GPCCI will hold a second edition of the event in October in Manila this year. It will also continue its monthly economic forum and business development initiatives.

“We are keeping a positive outlook amid the global financial crisis. Everybody is affected by the crisis but we just have to continue doing (productive) activities and move forward,” said Schroeder.

Filed under: Business

Germany re-opens consulate office in Cebu after 100 years

Sun.Star Cebu <> Saturday, May 2, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

TO provide consular services to a growing number of German citizens in the country, Germany re-opened its honorary consulate office in Cebu after 100 years.

The German Government appointed long-time Cebu resident Dr. Franz Seidenschwarz, a botanist who teaches at the University of San Carlos-Talamban Campus, honorary consul.

“We are proud to re-establish our presence in this historic and dynamic city. The new consul will promote business, cultural, and scientific activities in Cebu. And Dr. Seidenschwarz is the right man at the right place,” said Ambassador Christian-Ludwig Weber-Lortsch,.

Weber-Lortsch said the first honorary consul of Germany based in Cebu was appointed in 1871 but “disappeared” in 1910. Since then, Germany opted to close the honorary consulate.

The ambassador said the re-opening of the honorary consulate office—now located at Ford’s Inn Hotel on A.S. Fortuna St. in Banilad, Cebu City—“signifies the fact that the German (resident and business) community in the Philippines is growing and prospering.”

In Cebu alone, there are more than 300 German citizens. More than 100 German companies—including furniture manufacturer and exporter Dedon and transportation company Ha-pag-Lloyd Philippines Inc., as well as other small and medium enterprises—continue to engage in furniture, shipping and tourism businesses in Cebu.

Weber-Lortsch said the new office also underscores Germany’s long-term commitment to the Philippines.

After handing over the official appointment documents to the new honorary consul last Wednesday at Casino Espanol, Weber-Lortsch and Cebu Gov. Gwendolyn Garcia unveiled the official signboard of the consular office.

Seidenschwarz has been named “adopted son” by the Provincial Government in 1997 in recognition of his work in the conservation of Cebu’s remaining forests.

In an interview, he said he plans to accomplish his primary task as a contact point for German citizens on any legal, business and cultural issues.

Filed under: Business, Tourism

Jobs still available in Cebu

Sun.Star Cebu <> Saturday, May 2, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

DESPITE the global economic slowdown, companies in Cebu—even those located in economic zones—are still hiring.

Department of Labor and Employment (Dole) 7 Director Elias Cayanong said the cost efficient measures taken by the companies in the past few months may have helped them recover from the effects of the global financial crisis.

This doesn’t prove, though, that the economy in Central Visayas has improved, he added.

“These companies were (probably) able to make up with their streamlining and cost-cutting initiatives and, at the same time, got some orders. They were able to consolidate their operations and now, with enough savings and with inventory clearing up, they are now in hiring and production mode,” he said.

Camera manufacturer Pentax Cebu Philippines Corp., for instance, has been hiring 200 production workers since the start of the year.

More orders

Renato Bontol, Pentax Cebu assistant general manager for administration, said the company has to hire more workers to cope with increasing orders. He pointed out that the demand for Pentax products usually picks up in time for summer.

He said the Pentax Cebu also received some orders from its mother company in Japan, which implemented a work force reduction program through voluntary retirement.

Pentax Cebu is located at the Mactan Economic Zone 1, which hosts 109 export companies with a total employment of 43,198.

According to Philippine Economic Zone Authority (Peza) report on the effects of the global financial crisis on economic zone locators, 17 companies at MEZ 1 hired 167 employees and 14 more announced 152 job vacancies as of March 2009. These
jobs include sewers, fashion designers, accountants and managers.

The same report also stated that Fourlinks Inc. has relocated its facilities to MEZ 1 from China and is now hiring workers.

New locators

“Also, additional need for manpower is on its way for three new projects that have been approved by the Peza Board. (They are) the Norwegian Maritime, Kudo Support and Pasaporte,” the report stated.

Peza said other companies continue to hire more people. Among them are Korean-led Philippine BXT Corp., which owns Imperial Palace Waterpark Resort and Spa in Lapu-Lapu City; shipbuilder Tsuneishi Heavy Industries Inc. in Balamban, Cebu; and Japanese electronics manufacturer and exporter Cebu Mitsumi Inc. in Danao City.

Dole, however, received reports of workers being displaced. The highest was in February when it recorded about 2,300. Only 700 workers lost their jobs in March, though.

Although the agency’s April report is yet to be finalized, Cayanong said the retrenchment figure in Cebu had “tapered off” last month.

Cayanong called on private and public stakeholders to continue their multi-sectoral endeavors to provide more jobs for the people in Central Visayas.

Yesterday, he joined SM Prime Holdings vice president for marketing Marissa Fernan and Cebu City Acting Mayor Michael Rama at the opening of the Jobapalooza 2009 at SM City Cebu.

Separate jobs fair were simultaneously held at the Provincial Capitol and at the Cebu City Sports Center.

The three venues offered a total of 10,500 jobs by 52 overseas companies and more than 90 local businesses. Dole expected more than 11,000 job applicants in all three jobs fair.

At SM City Cebu alone, more than 50 companies—mostly engaged in business process outsourcing, electronics, garments and information technology—offered about 500 jobs.

Gregorio Deramos, 32, is among the hundreds of applicants who joined the long line to the SM Cebu Trade Hall, hoping for a steady-paying job that matches his skills.

A father of two children, Deramos has been operating his own taxi for a year. Before that, he worked as a waiter at a local restaurant for five years. He went to the job fair in search of a better-paying job in a local or overseas company.

“This is part of SM’s corporate social responsibility, being one of the biggest employers in the country with more than 100,000 direct hires in all its operations throughout the country,” said Fernan, adding that the company plans to host a bigger jobs and livelihood fair next year.

Filed under: Business, Employment, Entrepreneurship, Retail, Small and Medium Enterprises

ATS buyer backs out

Sun.Star Cebu <> Friday, May 1, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

CITING difficulties in raising funds due to constraints in the debt markets, the buyer of the shipping arm of the Aboitiz group
decided not to push through with its plan to purchase the entire Aboitiz Transport System Corp. (ATS).

KGLI-NM Holdings Inc. yesterday informed the Aboitiz group in writing that it would not proceed with the purchase of the 42-percent ATS common shares owned by the Aboitiz Equity Ventures (AEV) and Aboitiz & Company, Inc. (ACO) worth at least $30 million.

This guarantees the more than 1,000 workers of ATS that Aboitiz still retains control over the shipping company. AEV and ACO have combined shares of roughly 93 percent in ATS.

“The deal is off. We are not giving any more extension. The P100-million option money paid by KGLI-NM to AEV and ACO is forfeited,” announced AEV chief financial officer Stephen Paradies yesterday afternoon in a press conference.

KGLI-NM had until yesterday to acquire the 42-percent stake. If it had pushed through with the acquisition, KGLI-NM would have gotten the remaining 51-percent stake owned by AEV and ACO until Sept. 30, 2009.

Coverage

The purchase price would have been based on the total equity stake of ATS of P4.5 billion, equivalent to P1.84 per share.

The supposed acquisition only covered the shipping and logistics businesses of ATS, including Superferry, Supercat and 2GO. It did not include the Aboitiz Jebsen Group of Companies-Aboitiz Jebsen Bulk Transport Corp., Aboitiz Jebsen Manpower Solutions Inc., Jebsen Maritime Inc. and its pool company in Australia.

Paradies disclosed that KGLI-NM had $30 million but saw difficulties in raising the balance, so it decided not to put in the money as it was not sure about its ability to acquire the entire company.

“We will run ATS as if there was no buyer. We will continue to operate it as one of our core businesses. We never went out to look for a buyer in the first place. KGLI-NM came to us,” he said.

The board of directors of AEV unanimously voted to accept the unsolicited offer of KGLI-NM to buy all of ATS’ shareholdings in Sept. 23, 2008.

Better

KGLI-NM is a domestic company, which is jointly owned by Negros Holdings and Management Corp. and Dutch-owned KGL Investment BV.

“Things have changed. Business is doing much better now. We are going to report a good first quarter and the second quarter looks quite strong. We will evaluate any offers but we will not go out looking for buyers. We will continue with this (shipping). The company (ATS) is not for sale right now,” said Paradies, adding that no one else has approached them to make any unsolicited offers.

He said the company had not decided what to do with the proceeds of the acquisition had it pushed through, but paying off some debts and investing in the power sector would have been among the options.

ATS, said Paradies, will continue to expand its cargo capacity by upgrading its fleet and systems and bringing in a couple of medium-sized vessels to operate in Cebu and northern Mindanao.

He said the company has decided to reduce passage capacity of its vessels due to “fierce” competition with the airline companies. It had reconfigured five of its more than 10 ferries that have already been operating in higher load factors.

Paradies also said that the logistics business 2GO is growing as ATS recently entered into joint venture with Kerry Logistics, an Asia-based logistics service provider with strong presence in China. The venture, which is still being finalized, will be under Aboitiz One, a wholly owned subsidiary of ATS.

Paradies also disclosed that express carrier and package delivery company UPS (United Parcel Service Inc.) recently appointed ATS to be its agent in the Philippines to handle parcel courier services.

ATS will also become part of the supply chain of ScanAsia Overseas Inc., an importer and distributor of fine food products and beverages in the Philippine market.

Filed under: Business

‘Cooperate, link with rest of Asia’

Sun.Star Cebu <> Thursday, April 30, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

A GOVERNMENT research institution engaged in independent and non-partisan research recommended that the Philippines cooperate and coordinate with other East Asian countries to accelerate intraregional trade and investment to cope with the global financial crisis.

The Philippine Institute for Development Studies (PIDS) pointed out that these investments will not only create job opportunities in the region but also boost the growth potential of promising industries, like business process outsourcing and tourism.

Speeding up intraregional trade and investment will encourage the Philippines to reduce its dependency on the US, especially in terms of export, and to increase reliance on neighboring countries.

In yesterday’s forum on non-tariff measures, global financial crisis and the Philippine outlook for 2009 organized by PIDS and the Cebu Chamber of Commerce and Industry, PIDS president Dr. Josef Yap said that the country will need a stimulus plan to contribute to investor confidence and help prop up the economy amid the global economic slowdown.

The Philippine Government passed its version of a stimulus package in the form of a P330-billion economic resiliency plan—P100 billion of which is for infrastructure projects and P30 billion for social protection programs.

Focus

“Given this condition (crisis), the government should act appropriately by putting up well-structured plans and reforms, avoiding leakages to corruption, and ensuring that programs and investments employ the most people and focus in areas that are likely to be hardest hit by the slowdown,” Yap said.

He lamented that the Philippine Government has not been putting up enough investments in the country, as shown in the continuous decline in new investments’ contribution to the gross domestic product (GDP).

However, it managed to cushion itself from effects of the crisis due to stable remittances in peso terms, contained slowdown in manufacturing and the continuation of public investment programs.

Yap expressed worry, though, that the country might not be able to sustain its capacity and fiscal revenues to cushion itself if the global financial crisis continues next year, an election year.

For East Asia to weather the global financial storm as a region, PIDS also called for a coordinated stimulus package in East Asia—a package that is expected to boost consumer demand in individual countries while eliminating the perception of trade protectionism.

Yap expressed hopes that part of China’s CNY4 trillion-fiscal stimulus package, for instance, will benefit the Philippines with China investing here.

PIDS senior research fellow Dr. Gloria Pasadilla said the country should also determine what sort of investments it wants to attract and help build.

Filed under: Business

Cable company launching digital technology in Cebu

Sun.Star Cebu <> Thursday, April 30, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

THE Cebu unit of the Lopez-owned SkyCable Corp. is now studying a plan to bring the “digital signal” to Cebu households and businesses sometime next year.

This is in line with the company’s plan to shift its technology from analog to digital and offer affordable packages to more price-sensitive markets, said SkyCable Cebu general manager Ronnie Pacio.

“We believe that the future of the cable TV industry is digital. Gone are the days when (an operator) can only offer one package at one rate. SkyCable is at the forefront of thinking and reinventing the cable TV industry (in the country),” he said in an interview last week.

He also pointed out that digital cable TV will address the varied preferences of customers and enable SkyCable to tap price-sensitive sectors to increase its subscriber base.

For SkyCable Cebu’s technology shift, Pacio estimated an initial capital of P15 million to P20 million.

Through the digital signal, customers will be provided with clearer pictures. It will also allow them to view schedules of shows of a particular channel without losing the channel they are watching. At the same time, it will enable them to organize the channels according to their preferences.

For SkyCable Cebu, on the other hand, the digital signal will allow them to “tailor-fit” channels into affordable packages
according to preferences and budget of customers, said Pacio.

“Cebu, in general, is a price-sensitive market. And they always look for balance in the price and quality of a product,” he said.

The cable TV company is also expecting an increase in card sales for its SkyCable Prepaid (formerly C-load Prepaid Cable TV) as a result of reduced consumer purchasing power due to the global financial crisis.

Pacio disclosed that their prepaid service, which targets the working class, households with children and price-sensitive groups, is contributing more than 10 percent of their revenues.

Without stating figures, he said the bulk of their revenues still come from postpaid cable television service subscribers.

Another source of revenue for SkyCable Cebu is the SkyBroadband which was launched last year. It comes in plans and bundled packages, including its bestseller Plan 1 mbps with cable TV subscription for P1,999 per month.

Coverage

SkyCable has already covered at least 100 kilometers in select class AB subdivisions in Cebu for this service, which specifically targets those really wanting faster broadband connection.

The implementation of SkyBroadband in Cebu cost them P30 million, said Pacio.

“We are continuously expanding. We want to grow our cable, both prepaid and postpaid, as well as our broadband service as we align our operations with SkyCable Corp. and as we plan to bring digital cable TV to Cebu,” he said.

Upgrading

SkyCable Cebu coverage areas include Cebu City, Mandaue City, Lapu-Lapu City, Minglanilla, City of Naga, Talisay City and Consolacion.

Pacio said they have no current plans to expand their coverage areas since they are still focused on upgrading their plant and their lines to offer broadband in more areas and digital signal in the future.

Filed under: Business, IT/Computers/Software Development